adidas AG (ADS.DE) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

-30.2%

€117.76

vs €168.80 price

Levered DCF

€134.53

After debt service

Piotroski score

8 / 9

Strong

Altman Z-score

3.4

Safe zone

Rating

A-

Overall 4 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	22.54×	55.33×	-438.48×	91.7×	32.97×	134.8×	28.98×	21.85×
P/B	5.23×	7.72×	7.18×	4.68×	6.54×	9.01×	8.43×	5.83×
P/S	1.22×	1.79×	1.53×	1.04×	2.32×	2.93×	2.42×	1.7×
EV / EBITDA	11.04×	18.2×	26.9×	16.57×	16.26×	30.05×	15.21×	12.47×
Gross margin	47.1%	50.8%	47.5%	47.3%	50.7%	49.7%	52.0%	51.9%
Operating margin	7.9%	5.6%	1.3%	3.0%	9.4%	3.8%	11.3%	10.8%
Net margin	5.4%	3.2%	-0.4%	1.1%	7.0%	2.2%	8.4%	7.8%
Current ratio	1.32×	1.24×	1.22×	1.27×	1.56×	1.38×	1.25×	1.44×
Debt / equity	0.96×	1.02×	1.21×	1.29×	0.71×	0.91×	0.7×	0.28×
Interest coverage	9×	6.82×	1.7×	4.88×	17.12×	4.72×	16.52×	50.38×
Dividend yield	1.2%	0.3%	0.4%	2.6%	1.2%	0.0%	1.2%	1.4%
Payout ratio	26.6%	16.4%	-166.7%	240.2%	39.2%	0.0%	33.6%	31.0%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	23.2%	14.0%	-1.6%	5.1%	19.8%	6.7%	29.1%	26.7%
Return on invested capital	12.0%	8.0%	-2.1%	3.6%	11.6%	4.2%	15.7%	19.2%
Return on assets	6.6%	3.7%	-0.4%	1.3%	6.7%	2.1%	9.6%	10.9%
Free cash flow yield	0.9%	5.6%	6.2%	-5.0%	5.1%	1.8%	3.7%	5.3%
Earnings yield	4.4%	1.8%	-0.2%	1.1%	3.0%	0.7%	3.5%	4.6%
Enterprise value	€34.1B	€45.7B	€37B	€29B	€50.7B	€60B	€59.8B	€36.3B
Net debt / EBITDA	1.27×	1.38×	3×	3.23×	0.48×	0.95×	0.65×	-0.3×
Cash conversion cycle (days)	133	101	106	141	99	111	89	81